Introduction Of Sheng Siong Company
One of the successful supermarkets in Singapore is Sheng Siong, established in 1985 by Lim brothers (Hock Eng, Hock Chee and Hock Leng). Since the early years, Sheng Siong set the mark by selling quality and low quantity product. From a daily turnover of S$3,000, it grew to S$19,000 within short years of being in business. Sheng Siong opened second outlet in Bedok in 1987 and third store in Woodlands followed in 1995 and sales at two outlets grew to around S$50,000 daily. In 2008, its objective had achieved such as S$600million in sales and ranked third-large retailer in Singapore by sales analysis in survey. Sheng Siong firstly corporate as private company named “Sheng Siong Group Pte. Ltd” but on July 4, 2011 it was changed to public company “Sheng Siong Group Ltd”. They have total of 23 supermarkets and hypermarkets that provide consumers with both “wet and dry” shopping options arranging from a wide assortment of fresh and chilled product, such as groceries to packaged and processed food products. Nowadays, they have over 300 products under 10 retailers with qualified brand name, portfolio of well-recognised house brands, global sourcing network, and good quality on assortment. The Environment Factors That Affect The Operations and Business Demographic Trends
The population characteristics and trend may have big impact to supermarket current and future business. Total Singapore's population reached 5.3 million which mean the annual growth increase approximately 2.5% on population. In addition, 45.4% of Singapore's populace are foreigners, which is the around sixth highest proportion of foreigners in worldwide (The Business Times, 2012). Therefore, Sheng Siong products are determined by the increase of growth. Political/Legal Forces
Government actions take place also has impact on firm by issue a regulations. Sheng Siong Supermarket need to register a license from International Enterprise Singapore in order to import and carry on wholesale dealings in rice, and Sheng Siong need to register for a license to operate meat or fish processing establishment from AVA ("Agri-Food & Veterinary"). Legislation such as Wholesome Meat and Fish Act, Control of Plants Act, Animal and Birds Act has to be governed by AVA. (Cited www.ava.gov.sg/ , 29 November 2012) In facts, Singapore taxation include corporate income tax with 17% and GST("Good & Service Tax") with standard-rate of 7% must be paid by all company and the price of the products as per taxes need to be changed. Economic Condition
Somehow, success of a company is depending on economic environment. Singapore is known for pro-business environment, attracting foreign investment and business entrepreneurs to increase the economic environment. In 2012, the economy grew by 0.3% compared with the same period in 2011 and the growth is supported by business service sectors. The consumer price index increased 4.2% compared to 2011 which bring benefits to Sheng Siong profits. On the other hand, gross domestic product in Singapore has contracted 1.5% last quarter of 2012 as the global market is slowing down due to Europe's debt crisis (Karl Lester M.Yap, 2012). Instead Sheng Siong Company still shows a good result of 48.1% year-on-year increase in net profit of S$9.8 million for the 3rd quarter of 2012 which compare with 2nd quarter 2012, Sheng Siong earned higher profit. Socioculture Condition
Socioculture forces have a big impact on what product that is in the supermarket. Sheng Siong Company has responds for consumer preferences and tastes with wide selection of quality products. Instead of selling the fresh groceries, Sheng Siong supermarket also provides some products that are uncommonly to be found in other supermarkets such as spices, sauces, and other canned products. Therefore, consumers have more choices and good quality product with cheaper prices. By the way, operating hours start from 7.00am to latest 11.00pm which allow...
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